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In Dow Jones News today, the Dow fell as markets took a break from the post-election rally and investors prepare for a potential rate hike in March.
The Dow also retreated sharply on news investigators raided three Illinois facilities of Caterpillar Inc. (NYSE: CAT), which fueled a sell-off in the company's stock.
Meanwhile, the Nasdaq was dragged down by Netflix Inc. (Nasdaq: NFLX) after a California law firm announced a class-action suit against the streaming giant.
Let's look at the numbers from Thursday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 21,002.97; -112.58; -0.53%
S&P 500: 2,381.92; -14.04; -0.59%
Nasdaq: 5,861.22; -42.81; -0.73%
Now, here's a look at today's most important market events and stocks, plus a preview of Friday's economic calendar.
Dow Jones News Today: Dow Can't Maintain Momentum
The Dow Jones Industrial Average retreated 112 points despite a strong public-trading debut from one of the world's largest social media giants. Despite the downturn, the Dow still remained above the 21,000 level at the end of the trading session.
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Investors are now awaiting a speech by U.S. Federal Reserve Chair Janet Yellen, who will talk on Friday afternoon at the Executives' Club of Chicago. The central bank will meet for the second time in 2017 on March 14.
The downturn came despite positive news in the U.S. labor market. Weekly jobless claims came in far lower than economists had anticipated last week. However, investors will have to wait until March 10 to see the official unemployment rate for February 2017.
Oil prices were sliding on news that U.S. crude inventories hit a record high. The Energy Information Administration announced domestic crude stocks increased by 1.5 million barrels last week. Even though that figure fell short of analysts' expectations, the United States has now seen its inventories swell to more than 520 million barrels.
The WTI crude oil price today dipped 2.27%. Brent prices also fell 2.18%.
Of course, the big story is the Snap Inc. (NYSE: SNAP) IPO.
The parent company of Snapchat had its first day on the New York Stock Exchange, and what a day it was. Shares rallied more than 44% above its initial public offering price of $17.00 as retail investors snapped up stock in the social media giant.
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This was the most anticipated technology IPO since Alibaba Group Holdings Ltd. (NYSE: BABA) joined the same exchange in 2014. With markets in a frenzy, should you jump into this feeding frenzy when it kicks off tomorrow?
The short answer is "wait it out." [Editor's note: However, if you want to purchase the stock, we answer how, right here.]
This IPO is immensely rigged against retail investors. The social media's user growth metrics are stagnating. And the company has already said that it may never be profitable.
But there is a way that you can make money during the Snapchat IPO without buying the stock. In fact, this company will make more money off Snapchat in the years to come than the social media company itself.
Stock Market News and Top Stocks to Watch Today: Mar. 2, 2017
- Shares of Caterpillar Inc. (NYSE: CAT) fell more than 4% on news that federal authorities are searching the manufacturing giant's headquarters. News of the story broke earlier this afternoon, but officials have not explained why they are looking at the organization. Speculation is brewing on word that agents were from divisions that included the FDIC, the Internal Revenue Service's Criminal Investigation Division, the Commerce Department's Bureau of Industry and Security's Office of Export Enforcement.
- Shares of Netflix Inc. (Nasdaq: NFLX) fell more than 2% on word that the company is facing a massive class-action lawsuit. According to a press release from law firm Levi & Korinsky, company executives have been accused of misleading investors over the impact of potential price increases to customer subscriptions.
- In earnings news, shares of Shake Shack Inc. (NYSE: SHAK) fell more than 2% after the company reported weaker than expected sales growth in the most recent quarter.
- After the bell, look for additional earnings reports from Costco Wholesale Corp. (Nasdaq: COST), American Outdoor Brands Corp. (Nasdaq: AOBC), and Autodesk Inc. (Nasdaq: ADSK).
Friday's U.S. Economic Calendar (all times EST)
- PMI Services Index at 9:45 a.m.
- ISM Non-Manufacturing Index at 10 a.m.
- Chicago Federal Reserve Bank President Charles Evans speaks at 10:15 a.m.
- Baker Hughes Rig Count at 1 p.m.
- U.S. Federal Reserve Chair Janet Yellen speaks at 1 p.m.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.